The Do No Significant Harm (DNSH) test is the negative side of the Article 2(17) sustainable-investment triple test. To qualify as a 'sustainable investment' under SFDR, an investment in an economic activity that contributes to an environmental / social objective must ALSO not significantly harm any of the other environmental + social objectives. The DNSH assessment under SFDR is operationalised via the SFDR RTS (Article 7 + Annex I PAI indicators as the principal DNSH harm indicators - if an investment has a material adverse impact on a PAI indicator that is considered evidence that the investment is significantly harming a sustainability objective). Unlike the Taxonomy Regulation DNSH (Article 17 Taxonomy + technical screening criteria per environmental objective), the SFDR DNSH is principle-based + relies on PAI indicators + FMP methodology rather than a specific TSC threshold. The June 2023 ESA Q&A confirmed FMPs may use a quantitative + qualitative DNSH approach + must disclose the methodology in pre-contractual + website + periodic templates.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.